Real estate trends come and go, greatly dictated by the economy and market reaction. Traditionally, corporate office space was usually found in big cities. With the rise and fall of the economy, many companies have decided to go suburban – choosing the lower costs associated with properties outside of major business hubs. Tenant reps from commercial brokerage firms report that this trend is reversing and corporate America is once again setting its sights on the hustle, bustle, and lower cost that big cities offer.
Corporate Real Estate Trends
When it comes to buying or leasing commercial office space, there are a number of ways to achieve the best results. Companies want a good return for their money with a successful company location. So they must know when it is time to change their approach, such as when the economy changes. Corporate tenant reps follow real estate trends closely in order to offer the best advice and best properties for their clients to consider.
When the economy is booming, there is urban sprawl which sees people moving further and further away from the city. When the economy is poor, the exact opposite occurs. People want to reduce their debt and move closer to the conveniences of the city without the burden of mortgages and expensive car payments. College grads stay in the city to look for jobs. Business follows a similar trend, since this sprawl is usually due to less expensive real estate and cost of living away from the city.
Current Urbanization Trend
Since the economic and housing crash of 2008, more people are moving back to the inner city since it is less expensive to live there. With widespread public transportation, concentrated resources, prominent colleges, and many other factors, homes across the country sit empty while the sale of city apartments is booming. According to tenant reps, the same can be said for commercial real estate.
Although some larger firms don’t want to give up suburban locations, newer branches, satellite offices, and smaller businesses are once again becoming more urbanized. Staff is being trimmed with such moves to make the entire effort even more beneficial.
Larger cities have generally been the corporate hub for many companies. Urban space has always been desirable, although the suburban relocation trend put a strain on that. Urban property values began to decrease, along with rental rates. As commercial office space has reversed this trend, it is becoming more expensive to locate to the suburbs. Tenant reps advise that businesses are once again pursuing more affordable choices and heading back to the inner city hubs.
What this means for old and new companies headed back to the city is that they must make a rapid decision, as the desire to urbanize is quickly growing. Working with skilled tenant reps is important, since finding the right place will get more challenging as time passes. Commercial tenant reps can help clients make such a change well worth the effort. College grads and current city dwellers agree that it means a shorter commute for them.
To learn about the best available office leases available in an urban market, commercial real estate brokers advise establishing a working relationship with reputable tenant reps who know the current real estate trends and available commerce properties. These professionals can make the search for corporate office space faster, easier, and more efficient all the way around!